Orange County Register
Distressed home sales rising Pending home sales rose in February, as did the share of distressed properties sold, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported this week.

MAKING SENSE OF THE STORY
• Pending home sales in California increased in February, according to C.A.R.’s Pending Home Sales Index (PHSI)*. The index was 112.1 in February, rising 20.6 percent from January’s revised index of 93.0, based on contracts signed in February. The index was down 1.6 percent from February 2010, when the presence of housing tax credits played a strong role in home sales. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market, according to C.A.R.
• “The increase in pending sales is typical for this time of year, as we usually see a seasonal improvement in the spring,” said C.A.R. President Beth L. Peerce.
• The total share of all distressed property types sold statewide increased in February to 56 percent, up from 54 percent in January and up from 55 percent in February 2010. Non-distressed sales made up the remaining share at 44 percent in February, down from 46 percent in January and down from 45 percent in February 2010.
• The statewide share of short sales increased to 23 percent in February, up from 22 percent in January and up from 19 percent in February 2010.

Read the full story:
http://mortgage.ocregister.com/2011/03/24/distressed-home-sales-rising/43621/

In Other News…
San Francisco Chronicle
Rates on 30-year fixed mortgage rises to 4.81 percent
Fixed mortgage rates edged up this week, but even 30-year rates below 5 percent have done little to boost home sales.

Read the full story:
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/03/24/national/a070117D54.DTL&type=business

The Wall Street Journal
Housing inventory increases, listing prices fall
Nationally, the inventory of unsold homes on multiple-listing services increased by 0.6 percent in February from one month prior. Over the past year, inventory is up by 13 percent, according to Move Inc.

Read the full story:
http://blogs.wsj.com/developments/2011/03/23/housing-inventory-increases-listing-prices-fall/

Los Angeles Times
Home resales fall 9.6 percent in February and prices are near 9-year low
Sales of previously owned homes dropped 9.6 percent in February and prices fell to their lowest level since 2002, reflecting a continued slump in the U.S. real estate market.

Read the full story:
http://www.latimes.com/business/la-fi-home-sales-20110321,0,7438761.story

The New York Times
More borrowers are opting for adjustable-rate mortgages
In the years since the financial crisis, adjustable-rate mortgages, or ARMs, with their low initial interest rates that changed over time, have been considered riskier than fixed-rate loans and shunned by most buyers. But these days more people are being persuaded to give the loans a try.

Read the full story:
http://www.nytimes.com/2011/03/20/realestate/20Mortgages.html?_r=1&ref=realestate

CNN Money
New home sales tumble to record low New home sales fell 16.9 percent in February, to the lowest level since the government began keeping records in 1963, as the reeling housing market failed to generate any momentum.

Read the full story:
http://money.cnn.com/2011/03/23/real_estate/new_home_sales/index.htm?hpt=T2

Mercury News
Are buyers turning away from new homes in weak markets? A new home, the dream of many would-be buyers, makes less and less financial sense in many places. A wave of foreclosures has driven down the cost of previously occupied homes and made them even more of a comparative bargain. By contrast, new homes have become more expensive.

Read the full story:
http://www.mercurynews.com/real-estate/ci_17674400

Yahoo Real Estate
Mortgage mod test becomes clearer Mortgage borrowers who are turned down for loan modifications may now get additional information that could help them understand why they didn’t qualify under the so-called “HAMP test.”

Read the full story:
http://finance.yahoo.com/news/Mortgage-mod-test-becomes-brn-3851250881.html?x=0&.v=1&.pf=real-estate&mod=pf-real-estate

What you should know about the market
• Buying a home can be time consuming. One way to save time is by organizing all the necessary documents most lenders require, such as those that prove employment and income. Typically, lenders want two recent pay stubs, two years of tax returns, bank statements, proof of assets, such as 401(k) and trusts, and debts, such as credit card statements. Documents are especially important for borrowers who are self-employed.
• Even if a home purchase is months or years away, having good credit history is essential. A few points on a FICO score can mean the difference between a higher or lower interest rate offered on a mortgage loan.
• Borrowers also are advised to monitor home-lending rates. Every Thursday, Freddie Mac officials calculate average mortgage rates by compiling rates from lenders across the U.S. on Monday through Wednesday. Rates can be found at freddiemac.com/pmms

The Wall Street Journal
Banks push home buyers to put down more cash
Many economists and housing analysts blame lax lending standards – including no-down payment, no-document loans – for contributing to the challenges in the current real estate cycle. As a result, most lending institutions have increased minimum down payment requirements. Now, a new proposal by the Obama administration calls for gradually raising down payments to a minimum of 10 percent on conventional loans – those that can be bought or guaranteed by Fannie Mae and Freddie Mac.

MAKING SENSE OF THE STORY
• Banks have found that larger down payments discourage delinquencies by increasing the buyers’ exposure to loss and reducing the impact of declining prices. According to a study by the Federal Reserve Bank of St. Louis, buyers who made smaller down payments were more likely to default during “unfavorable economic circumstances, such as a housing market slowdown or job loss.”
• A recent analysis showed the median down payment in nine major U.S. cities rose to 22 percent last year on properties purchased with conventional mortgages. That percentage doubled in three years and represents the highest median down payment since the data were first tracked in 1997.
• Higher borrowing costs and larger down payments could cause housing prices to decline further, analysts say. For now, borrowers who can’t afford such amounts are turning to alternative programs, such as loans for veterans or those backed by the Federal Housing Administration. Some industry experts say this has created a nonconventional mortgage market for riskier borrowers and those who don’t qualify for conventional loans.

Read the full story:
http://online.wsj.com/article/SB10001424052748703312904576146532935600542.html?mod=WSJ_hp_LEFTTopStories

In Other News…
CNN Money
30 percent of mortgages are underwater
Home prices dropped 2.6 percent nationwide during the last three months of 2010, pushing more borrowers underwater, according to a quarterly real estate market survey from Zillow.com.

Read the full story:
http://money.cnn.com/2011/02/09/real_estate/underwater_mortgages_rising/index.htm

San Diego Union-Tribune
Will Millennials reinvigorate the U.S. housing recovery?
Millennials, those between18-34, will drive America’s housing recovery as prices have generally become more affordable and mortgage rates are still historically low, said Pete Flint, CEO of real estate website Trulia.com.

Read the full story:
http://www.signonsandiego.com/news/2011/feb/09/will-millennials-reinvigorate-us-housing-recovery

San Francisco Chronicle
Foreclosures raise U.S. economic stress The nation’s economic stress inched up in December because higher foreclosures outweighed lower unemployment, according to The Associated Press’ monthly analysis.

Read the full story:
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/02/08/financial/f031330S84.DTL

The New York Times
Calculating the annual percentage rate
The lending industry has tried to make it easier for borrowers to understand the true cost of a mortgage by disclosing both its interest rate and its annual percentage rate, or A.P.R. But consumers may often wonder which figure they should focus on when buying or refinancing a property.

Read the full story:
http://www.nytimes.com/2011/02/13/realestate/mortgages/13mortgages.html?_r=1&ref=realestate

CNN Money
Foreclosures are falling – but it’s a fake out
Foreclosure filings plunged in January, but don’t shake those pom-poms yet. It’s strictly a fake out.

Read the full story:
http://money.cnn.com/2011/02/10/real_estate/foreclosure_filings_fall/index.htm

Los Angeles Times
Rising construction costs could boost new-home prices soon
With interest rates near rock-bottom levels, most people realize it’s only a matter of time before loan costs start to rise. After all, what comes down in the mortgage world always has a way of going up.

Read the full story:
http://www.latimes.com/business/realestate/la-fi-lew-20110213,0,6809981.story

CNN Money
Home sales grow, aided by more stable prices
Home sales volume rose sharply in the final three months of 2010, aided by more stable prices on a year-over-year basis, a real estate industry group reported last week.

Read the full story:
http://money.cnn.com/2011/02/10/real_estate/realtors_home_prices/index.htm

Los Angeles Times
Federal Housing Agency backs off proposal to ban transfer fees
Thousands of homeowner associations and condominiums around the country just sidestepped a potentially costly problem: A federal agency this month backed off its controversial plan that would have made obtaining mortgages in their communities much more difficult, and would have dried up a key source of revenue that associations use to pay for improvements and property maintenance.

Read the full story:
http://www.latimes.com/business/realestate/la-fi-harney-20110213,0,6473192.story

What you should know about the market…
• When preparing for the purchase of a house, there are several items buyers must think about, such as their main priorities. Buyers should determine whether it’s more important to live in a particular type of home, such as a single family home with a garage, or in a particular neighborhood.
• Some neighborhoods hold value more than others during a housing downturn. Buyers can work with a knowledgeable REALTOR® to find a neighborhood that meets their needs as well as one where home values are stabilizing or rising.
• Once a buyer finds a home he want to make an offer on, he should be sure not to make a low-ball offer. Some sellers are willing to negotiate and others are not. Working with a REALTOR® can help ensure the buyer is dealt with fairly and guided through the process.

Smart Money
Real Estate: Finally a good investment?
The housing market still looks pretty bleak:  There were a record 1 million foreclosures last year, home prices are still falling in many regions, and the number of “underwater” properties is at a record high.
And things don’t look much better in other areas of real estate. The number of construction jobs continues to decline, even as other parts of the economy have added jobs. And mortgage rates have moved higher as long-term Treasury yields have backed up during the past few months.  Basically, the real estate market remains a mess.
Real estate encompasses a wide range of markets – homes, apartments, hospitals, office buildings, strip malls, dormitories and other properties. But for our purposes, let’s focus on residential real estate, or homes. Here are four reasons to think residential real estate might represent a bargain – with one big caveat.

KEEP THIS IN MIND
• Everyone hates homes – When the housing market is in the doldrums, people tend to avoid thinking about the value of their home. Sellers complain they’re not getting offers and buyers bemoan the strict lending requirements. However, prospective buyers should be contrarian and take advantage of a down housing market.
• Smart people are buying real estate – A prominent hedge-fund manager said in a speech last fall: “If you don’t own a home, buy one. If you own a home, buy another one, and if you own two homes, buy a third and lend your relatives the money to buy a home.” He believes that interest rates and home prices will rise this year, so real estate bargains won’t last much longer.
• Real estate performs well during inflation – Convention says Treasury Inflation Protected Securities, commodities, and real estate do well in an inflationary environment. Real estate performed well during the period in the 1970s, when persistent inflation and high unemployment occurred.
• Demand may be coming back – Job creation and getting people employed are the two major factors in the housing rebound. There’s much debate about when the job market will recovery. Optimists say the recovery will happen this year, while pessimists say it won’t happen for several years.

Read the full story:
http://www.smartmoney.com/personal-finance/real-estate/-1295050347411/

In Other News…
CNN
Existing home sales jump 12 percent
Sales of existing homes jumped in December, marking the fifth month of gains in the past six months, based on an industry report released Thursday.

Read the full story
http://money.cnn.com/2011/01/20/real_estate/existing_home_sales/index.htm

NY Times
When mortgage rate locks expire
As mortgage rates have edged higher, many borrowers have been locking in loan rates for a home purchase or refinancing.

Read the full story
http://www.nytimes.com/2011/01/09/realestate/mortgages/09mort.html?_r=1&ref=realestate

USA Today
2011’s green homes to be cheaper, smarter, tighter
What will be the top 2011 trends in green building? A non-profit research group expects green homes will become increasingly affordable, smart, and energy-efficient — all trends that Green
House agrees are likely.

Read full story:
http://content.usatoday.com/communities/greenhouse/post/2011/01/2011-green-buillding-trends/1

The Wall Street Journal
Market for vacation homes is on the rise
Sales in many vacation communities across the U.S. soared last year to levels not seen since boom times, driven by deep discounts, cash purchases, and buyers’ rising stock portfolios.

Read the full story:
http://online.wsj.com/article/SB10001424052748704482704576071984006994652.html?mod=WSJ_RealEstate_LeftTopNews

USA Today
Credit scores get easier to track down and less secretive
You may be a pillar of your community, admired by your colleagues and beloved by friends and family, but if you have a mediocre credit score, you probably won’t be able to get a decent interest
rate on a car loan, mortgage, or credit card.

Read the full story:
http://www.usatoday.com/money/perfi/columnist/block/2011-01-11-yourmoney11_ST_N.htm\

San Francisco Chronicle
CalHFA mortgage aid program for jobless begins
On Monday, more than two months behind schedule, the California Housing Finance Agency will begin taking applications for a federally funded program that will give some unemployed homeowners up to $18,000 each over six months to pay their mortgage.

Read the full story
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/01/09/BU4N1H5FOR.DTL

Los Angeles Times
Home seizures by banksdecline in state
Fewer Californians grappled with foreclosure last year, bucking a national trend and giving homeowners fresh hope that the state’s housing market could be on the mend.

Read the full story
http://www.latimes.com/business/la-fi-foreclosures-20110113,0,6804237.story

Sacramento Bee
The “Big One” might be a flood
California has more risk of catastrophic storms than any other region in the country – even the Southern hurricane states, according to a new study released Thursday.

Read the full story
http://www.sacbee.com/2011/01/14/3323275/the-big-one-might-be-a-flood.html

CNN Money
1 million homes repossessed in 2011
Foreclosures were at a record high in 2010, and more than 1 million people lost their homes, even as notices started leveling off during the end year.

Read the full story
http://money.cnn.com/2011/01/13/real_estate/foreclosures_2010/index.htm

What you should know about the market:
• Historical data from the National Association of Realtors (and adjusted for inflation by Businessweek.com) show that in 18 of the 25 largest metro areas in the U.S., the value of homes purchased in 1990 had increased by 2010, often by double digits. And this in a year when real estate prices around the country have softened since their peak in 2006. These houses would have been worth even more a few years ago.

• In an analysis of the country’s 25 largest metro areas, Businessweek.com found that the Portland, Ore., area had the largest real price gain since 1990, with the median sale price in this year’s third quarter ($242,100) up about 85 percent over 1990, in inflation-adjusted terms. Home prices in the Denver, Baltimore, and Seattle areas also made gains of more than 50 percent in that period.

• Yet in some other markets where homeownership skyrocketed during the housing boom, inflation-adjusted prices have fallen so dramatically that they are now below 1990 levels. Real prices in the Atlanta metro, for instance, are down about 21 percent compared with 2 years ago, and in Sacramento they are down 19 percent.

• After recovery from the housing bust, home prices are expected to settle into a price-growth trends that’s slightly higher than inflation over the long term. So in that sense, housing is still a long-term investment with a positive yield.

The New York Times

The price of a “no-cost” loan
Some home buyers who may be concerned about paying high closing costs might be tempted “zero-cost” or “no-cost” loan option, which requires no cash outlay, but typically adds a half percentage point to the rate. However, some financial consultants say these loans tend beneficial to buyers planning to have the loan for less than five years.

KEEP THIS IN MIND
• One of the primary differences between a no-cost loan and similar loans is that no-loans do not tack on closing costs to the balance, but instead increase the rate.

• With no-cost loans, third-party fees including the appraisal, credit report, title insurance,
recording, and the use of a mortgage broker are paid by the lender. The fees, including amount the broker is being paid, are disclosed on the closing statement.

• Home buyers who bypass a broker and work directly with a lender may encounter transparency, as loan officers are not required to disclose the amount the bank is on the loan.

• Borrowers weighing their loan options are advised to use a mortgage amortization
calculator to compare the costs for a conventional loan compared with a no-cost Federal Reserve provides an amortization calculator on its Web site at
www.federalreserve.gov

Read the full story:
http://www.nytimes.com/2010/10/24/realestate/24mort.html?ref=realestate

In Other News…
Los Angeles Times

Signs of foreclosure paperwork problems were missed, FDIC chief says Regulators should have foreseen a wave of suspect foreclosure paperwork coming, a key official admitted Monday as federal banking agencies said they had launched their own in-depth review of
the issue.

Read the full story:
http://www.latimes.com/business/la-fi-foreclosures-bernanke-20101026,0,2802043.story

Orange County Business Journal

Stand-alone home prices move above $500,000 mark. The median price of an existing Orange County home moved back above the $500,000 mark in
September, while the pace of sales remained sluggish the CALIFORNIA ASSOCIATION OF REALTORS® reported Friday.

Read the full story:
http://www.ocbj.com/news/2010/oct/22/stand-alone-home-prices-move-above-500000-mark/

CNN Money

Obama mortgage mods slow, hitting nearly 500,000.  The government’s main foreclosure-rescue program continues to show signs of slowing progress,
according to a federal report released Monday.

Read the full story:
http://money.cnn.com/2010/10/25/real_estate/HAMP/index.htm

The New York Times

Short sales revisited as foreclosures are revived Bank of America and GMAC are firing up their formidable foreclosure machines again, after a brief
pause.

Read the full story:
http://www.nytimes.com/2010/10/25/business/25short.html?_r=1&ref=realestate

San Francisco Chronicle

Refinancing rush helps banks amid foreclosure mess.  A rush by U.S. homeowners to refinance at near record-low interest rates marks a rare bright spot for the mortgage industry, under attack for choking the economy with shoddy loans and botched foreclosures.

Read the full story:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/10/26/BUKB1G1NEU.DTL

The New York Times

Foreclosures had errors, bank finds.  Even as Bank of America begins to restart foreclosure proceedings in 23 states on Monday, the bank confirmed that it had discovered errors, including incorrect data and misspelled names, in the paperwork it had reviewed.

Read the full story:
http://www.nytimes.com/2010/10/25/business/25foreclosure.html?ref=realestate

Los Angeles Times

Your credit score is constantly changing.  It also varies depending on which of the three main credit repositories you check. Each has a different scoring formula and different information in its files.

Read the full story:
http://www.latimes.com/business/realestate/la-fi-lew-20101024,0,6547837.story

CNN Money

Existing home sales on the rise.  Existing home sales climbed for the second month in a row in September, fueling some hope that a housing recovery is underway.

Read the full story:
http://money.cnn.com/2010/10/25/news/economy/existing_home_sales/index.htm?hpt=T2

What you should know about the market

• The median price of an existing, single-family detached home sold in California during September was $309,900, down 2.7 percent from August’s $318,660 median price, but up 4.5 percent from the $296,610 median price recorded for the same period a year ago, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) September sales and price report. September also marked 11 consecutive months of year-over-year price gains.

• C.A.R.’s report also showed that, contrary to the national picture, the housing supply in California has been below normal throughout 2010. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes remained relatively unchanged in September at 6.2 months but was up from the 4.5 months recorded in September 2009. The index was 6.1 months in August. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

The New York Times

A little-known loan program for fixer-uppers
Home buyers thinking of purchasing a distressed property in need of repair, but who are concerned that the cost of the repairs could drain their savings account may qualify for the Federal Housing Administration’s (FHA) 203(k) rehabilitation program.

KEEP THIS IN MIND

• The FHA’s 203(k) rehabilitation program provides loans for covering renovation costs as well as the purchase price of the primary residence. Investors are not eligible for this program. Additionally, similar to traditional FHA loan programs, the rehab program allows for a down payment of as little as 3.5 percent.

• A common misperception about the program is that the house needs to be unlivable. Realistically, the property just needs to be outdated, according to a lender familiar with the program. The property “just has to appraise below market value and then at market value with the repairs.”

• Improvements deemed “luxury” are ineligible; however, the program has a wide range of definitions for “repairs” and “modernization.” Covered repairs include items such as a new roof or heating system, as well as decorative changes, like replacing vinyl with ceramic tile on the kitchen floor or painting the interior.

• In addition to putting down at least 3.5 percent of the current value of the property, buyers also must use a HUD-approved lender, appraiser, and a contractor approved by the lender for the repairs. One list of approved businesses can be found at 203kcontractors.com.

• Borrowers considering the FHA rehab loan program should be aware that loan rates typically run around a percentage point higher than conventional loans, and come in 15- to 30-year terms, either fixed or adjustable. Additional paperwork for inspection, appraisal, title updating, and the like can increase closing costs by $1,000 or more higher than the average.

• For additional information about the FHA 203(k) rehabilitation program, please visit: http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm.

Read the full story:
http://www.nytimes.com/2010/10/17/realestate/mortgages/17mort.html?_r=1&ref=realestate

In Other News…

Los Angeles Times

Mortgage rates edge higher after three weeks of declines
Fixed rates on home loans edged higher this week after three weeks of declines, Freddie Mac said in its latest survey.

Read the full story:
http://latimesblogs.latimes.com/money_co/2010/10/mortgage-rates-edge-higher-freddie-mac-says.html

Mercury News

So you bought a foreclosed home. Now what?
It seemed too good to be true: You bought a house in foreclosure at a fraction of the former price. Maybe you even knocked out a wall or two and remodeled with all the money you saved. But now thousands of foreclosures around the country may be invalid because of bank paperwork problems. Should you worry?

Read the full story:
http://www.mercurynews.com/real-estate-news/ci_16351182

Los Angeles Times

Mortgage database’s murky legal status adds another wrinkle to foreclosure mess
Major banks and mortgage lenders are coming down with another legal headache in their efforts to seize properties from homeowners in default.

Read the full story:
http://www.latimes.com/business/la-fi-mortgage-foreclosure-20101021,0,4933760.story

SmartMoney

Credit scores: How 720 became the new 680
Until recently, a credit score of 680 was something to be proud of. It meant you paid most of your bills on time, got dinged when you went shopping for a refi, but in general, had a solid enough record to get a loan at the best rates.

Read the full story:
http://www.smartmoney.com/personal-finance/debt/credit-scores-what-you-need-now/

Mercury News

Foreclosure mess: Federal agencies probing banks, White House says The White House says federal agencies are investigating allegations of widespread errors in foreclosure documents.

Read the full story:
http://www.mercurynews.com/breaking-news/ci_16377126

What you should know about the market

• Potential home buyers still waiting on the sidelines for home prices or interest rates to decline further might want to consider that conditions for buying a home are better today than at any time in recent history.

• The average rate for a 30-year, fixed-rate mortgage for the week ending Oct. 21 was 4.21 percent and 3.64 percent for a 15-year-fixed, according to Freddie Mac. By comparison, the average 30-year-fixed mortgage was 5.09 percent in January and approximately 6 percent two years ago.

• In August, the median price of an existing, single-family home in California was $318,600. At this week’s 4.21 percent rate for a 30-year-fixed mortgage, the monthly principal and interest payment on a median-priced home in California would be $1,555 – likely the same or possibly less than the amount paid monthly in rent.

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

]]> http://orangecountyrealestatevoice.com/2010/10/21/beyond-the-headlines-14/feed/ 0 http://orangecountyrealestatevoice.com/2010/09/26/beyond-the-headlines-11/ http://orangecountyrealestatevoice.com/2010/09/26/beyond-the-headlines-11/#comments Sun, 26 Sep 2010 23:49:16 +0000 Patrick Canavan http://orangecountyrealestatevoice.com/?p=889

Sacramento Bee

California home sales drop in August compared with last year
The median home price of an existing, single-family home in California rose 1.2 percent compared with July and 8.6 percent from a year ago, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported this week. Following two months of consecutive month-over-month declines, California home sales edged up 1.8 percent in August compared with July, but were down 14.9 percent compared with August 2009.

KEEP THIS IN MIND

• According to C.A.R. President Steve Goddard, home buyers who are waiting on the sidelines should consider the opportunities available in today’s market. Favorable home prices and interest rates at or near historic lows make housing affordability the best in recent years. Anyone who is in a position to buy a home should do so before either of these key factors rise.

• The statewide median home price posted its 10th consecutive year-over-year gain in August, according to C.A.R.’s report. The median price of an existing, single-family detached home sold in California during August 2010 was $318,660, an 8.6 percent increase from the revised $293,400 median price recorded in August 2009. The August 2010 median price was up 1.2 percent compared with July’s $314,850 median price.
• C.A.R. Chief Economist Leslie Appleton-Young says California’s housing market is transitioning from the conclusion of the federal home buyer tax credit and that home sales are strongest in the higher-price range. The strength in the upper-end market combined with inventory levels that are higher, but still lean by average, has led to home prices holding steady.

• To hear more from Ms. Appleton-Young, please visit
http://videos.car.org/mediavault.html?menuID=1&flvID=10.

Read the full story:
http://www.sacbee.com/2010/09/22/3048464/california-home-sales-drop-in.html

In Other News…

Los Angeles Times

Debate might give new life to mortgage cramdown legislation If there is a term that strikes fear in the hearts residential lenders everywhere, it is “cramdown.” Lenders dread the judicial procedure that erases a portion of a borrower’s mortgage because the house, which is the underlying security or collateral for the loan, is worth less than what is owed on it.

Read the full story:
http://www.latimes.com/business/realestate/la-fi-lew-20100919,0,251792.story

Bloomberg

U.S. home prices fell 3.3 percent in July from year earlier
U.S. home prices dropped 3.3 percent in July from a year earlier, the eighth consecutive decline, as foreclosed properties flooded the market.

Read the full story:
http://www.bloomberg.com/news/2010-09-22/home-prices-in-u-s-fell-3-3-in-july-from-year-earlier-fhfa-index-shows.html

The Wall Street Journal

Refinancing: Who can you trust? With mortgage rates falling to record lows this summer and the housing market showing signs of a pulse, refinancing activity is perking up. It’s too bad that so many people are relying on oversimplified advice and bad numbers to decide when to pull the trigger.

Read the full story:

http://online.wsj.com/article/SB10001424052748704652104575494190518195172.html?mod=WSJ_RealEstate_LeftTopNews

Los Angeles Times
FHA may slash upfront costs of some reverse mortgages The Federal Housing Administration isn’t talking publicly about it, but the agency may be getting ready to cut the upfront costs of reverse mortgages for some borrowers.

Read the full story:
http://www.latimes.com/business/realestate/la-fi-reverse-mort-20100919,0,5678747.story

CNN

A housing rebound? Yes, it’s possible Despite continued discouraging data from the real estate sector, a few bullish arguments are beginning to emerge. One MIT economist even believes that demand for new homes exceeds residential construction.

Read the full story:
http://finance.fortune.cnn.com/2010/09/17/a-housing-rebound-yes-its-possible/

San Diego Union-Tribune

Most oppose walking away from mortgage A majority of Americans believe it is “unacceptable” for homeowners to stop paying mortgage payments and walk away from their homes, says a Pew Research Center survey.

Read the full story:
http://www.signonsandiego.com/news/2010/sep/15/most-oppose-walking-away-mortgage/

Los Angeles Times
Shorter-term mortgages make sense for some people, not for others
Loans that must be paid off in 15 or 20 years instead of the standard 30 have benefits, but there may be better ways to invest your cash.

Read the full story:
http://www.latimes.com/business/la-fi-perfin-20100919,0,2494709.column

CNN

Foreclosure rates hold steady
The foreclosure crisis has entered a new phase: The number of properties entering the foreclosure process has dropped, and now nearly matches the number of repossessions.

Read the full story:
http://money.cnn.com/2010/09/16/real_estate/steady_foreclosure_rates/index.htm?hpt=T2

What you should know about the market

• Some homeowners may attempt to make home improvements on their own, without the proper permits and/or skill set. When it comes time to sell the house, buyers likely will use that to their advantage when negotiating. To avoid this, many real estate professionals advise homeowners to hire licensed contractors and to do due diligence to ensure the proper permits have been approved by the city, county, or others who may need to approve the project.

• When it comes time to hire a licensed contractor, homeowners may opt to search online. Sites that are driven by consumer ratings often will be the best bet because consumers can see what other homeowners say about the contractor and his/her quality of work. However, consumers should beware of sites with anonymous postings and advertisements that appear in search results that look like positive ratings.

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

Sacramento Bee

42,000 of California’s jobless will get help with mortgages

The U.S. Treasury Dept. announced yesterday it is providing additional funding to a California

program to help homeowners struggling to make their mortgage payments due to unemployment.

The program, administered through the California Housing Finance Agency (CalHFA) will assist

struggling borrowers make up to six months of mortgage payments. Lenders will be asked to match the government contribution.

KEEP THIS IN MIND

• The program aims to help 19,000 unemployed borrowers in California between its

November launch and next July. An additional 23,000 borrowers will receive help over the

next two years, according to CalHFA estimates.

• To qualify for the program, borrowers must be unemployed and eligible for unemployment

benefits, and live in the home tied to the mortgage. Borrowers must be fewer than 90 days

behind on mortgage payments and meet low- and moderate-income guidelines. Income

requirements can be found at http://keepyourhomecalifornia.com/income.pdf.

• CalHFA is focusing on providing aid to unemployed borrowers struggling with purchase

loans, excluding refinanced loans. According to CalHFA officials, it is too difficult to decide

who “cashed out for a good reason and who didn’t.”

• More information about the CalHFA program, including eligibility, program summary,

income requirements, and frequently asked questions, can be found at

http://keepyourhomecalifornia.com.

To read the full story, please click here:

http://www.sacbee.com/2010/08/12/2953229/42000-of-californias-jobless-will.html

Bloomberg

“Buy and Bail” homeowners get past loan restrictions

Real estate professionals call it “buy and bail,” acquiring a new house before the buyer’s credit

rating is ruined by walking away from the old because it’s “underwater,” or worth less than the

mortgage. It’s an attempt to escape payments on a home whose value may never recover while

securing a new property, often at a lower price with a more affordable mortgage.

To read the full story, please click here:

http://www.bloomberg.com/news/2010-08-10/-buy-and-bail-homeowners-get-past-mortgagehurdles-from-fannie-freddie.html

The Mercury News

Median home prices up in San Jose, San Francisco areas, most U.S. cities

Home prices rose in nearly two-thirds of U.S. cities-including the San Jose and San Francisco

areas-this spring as buyers took advantage of tax incentives that gave the struggling housing

market a temporary jolt.

To read the full story, please click here:

http://www.mercurynews.com/breaking-news/ci_15742043

Los Angeles Times

Short sales soar in California, U.S.

Sales of homes for less than the amount of their outstanding mortgage debt have tripled since 2008, particularly in California and the Sunbelt, according to a report released Tuesday.

To read the full story, please click here:

http://www.latimes.com/business/la-fi-short-sales-20100811,0,7193924.story

In Other News…

The Washington Post

FHA tells Congress: Mortgage insurance claims are down; home prices a concern

Mortgages backed by the Federal Housing Administration have performed better than expected so far this fiscal year, though the improvements could be overturned if home prices sink, according to a report the agency submitted to Congress last week.

To read the full story, please click here:

http://www.washingtonpost.com/wpdyn/content/article/2010/08/03/AR2010080306749.html?hpid=sec-business

CNN Money

20 percent of mortgages are underwater

More than 20 percent of the nation’s mortgage borrowers owe more than their homes are worth.

To read the full story, please click here:

http://money.cnn.com/2010/08/09/real_estate/fewer_underwater_borrowers

Los Angeles Times

Shopping around for title insurance can cut closing costs

If you finance your home through the normal lending process, a title search will undoubtedly turn up any liens for delinquent property taxes, unpaid loans, and unsettled claims by subcontractors for labor and materials.

To read the full story, please click here:

http://www.latimes.com/business/realestate/la-fi-lew-20100808,0,7858566.story

CNN Money

Foreclosures rise in July

The latest foreclosure numbers carried a mixed message: They’re up 3.6 percent from the month

before, but down 9.7 percent from 12 months earlier.

To read the full story, please click here:

http://money.cnn.com/2010/08/12/real_estate/July_foreclosure_totals/index.htm

What you should know about the market

• Companies promising to reduce or eliminate credit card balances and other debt for

customers no longer will be allowed to charge an up-front fee. The Federal Trade

Commission (FTC) recently announced new restrictions to crack down on the debt

settlement industry. Beginning Oct. 27, debt settlement companies only will be able to

charge a fee once a customer’s debt has been reduced, settled, or renegotiated.

• The new FTC regulations also require debt settlement companies to disclose to customers

how long it will take to get results, how much it will cost, and any negative consequences

that could arise from the process.

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

Beyond the Headlines

C.A.R. Mortgage Update

This week’s C.A.R. Mortgage Update contains information about changes to FHA lending standards; Obama administration’s steps to shore up the Federal Housing Administration program; three large banks issuing more than half of U.S. residential mortgages and its impact on taxpayers; changes to mortgage interest reporting; and the possibility of a new wave of foreclosures as many option ARMs reset to higher rates.

FHA will tighten credit standards

Although the Federal Housing Administration (FHA) has confirmed that as of Sept. 30 it will fall short of its legal requirement to maintain supplementary reserves of 2 percent of the loans it insures, FHA Commissioner David Stevens says that it will not be seeking a taxpayer bailout.

Instead, to help mitigate losses, the FHA will tighten credit standards to rebuild the cushion to 2 percent or more, without raising the premiums borrowers pay or seeking an increase in its down-payment requirement of 3.5 percent.

Under the new rules, lenders making FHA-insured loans would need to show net worth of at least $1 million, an increase from $250,000. The agency is seeking to ensure that lenders have funds available to compensate the FHA if their loans fail to meet quality standards.

The FHA also will impose a maximum loan value of 125 percent of the current estimated home value on refinanced loans, in line with Fannie Mae and Freddie Mac.

Appraisals will be valid for no more than four months, a decrease from the previous six to 12 months validation period. The FHA also plans to implement appraisal changes adopted earlier this year by Fannie and Freddie. Mortgage brokers or bank employees paid on commission won’t be allowed to order appraisers.

To read the full story, please click here:

http://online.wsj.com/article/SB125328361187423115.html

To view additional articles about new home loans, loan refinances, or loan modifications, please visit the following:

Obama bolsters program that insures home loans

To read the full story, please click here:

http://money.cnn.com/2009/09/18/news/economy/FHA_housing_trouble/index.htm?postversion=2009091815

Uncle Sam bets the house on mortgages

To read the full story, please click here:

http://online.wsj.com/article/SB125322329116020929.html

A reckoning on option ARMs

To read the full story, please click here:

http://www.nytimes.com/2009/09/20/realestate/20mort.html?_r=1&ref=realestate

Feds plan to tinker with mortgage interest reporting

To read the full story, please click here:

http://www.latimes.com/classified/realestate/news/la-fi-lew20-2009sep20,0,1828223.story

Beyond the Headlines

Chicago Tribune

Short sales spread across real estate market, leaving frustration in their wake

As more homeowners find themselves underwater — owing more on their mortgage than their home is currently worth — and unable to make the monthly mortgage payments, many are turning to short sales, which allow a homeowner to sell their home for less than owed on the mortgage. Short sales can be a win win situation for all parties, because they enable home buyers to purchase properties in desirable neighborhoods and at favorable prices.

KEEP THIS IN MIND

• Theoretically, short sales should be a win-win for the bank and the homeowner. Although the bank does not receive the full amount owed on the mortgage, it also does not incur the costs of foreclosure and/or eviction, if necessary. Many homeowners also prefer short sales because it is less damaging to their credit scores than a foreclosure. However, many real estate experts say that the majority of banks are reluctant to approve short sales, and often let properties go into foreclosure, even when there are reasonable offers on the property. In addition to considering the price, most lenders also take into consideration whether the homeowner can demonstrate financial hardship. If the homeowner is capable of making payments, many lenders will try to work out a loan modification, rather than a short sale.

• Unlike foreclosed properties, which may be run-down and vacant for many months, short-sell properties are likely to be better maintained, as most owners may still live in the home.

• Short sales often are more time intensive than traditional transactions and often require additional paperwork. Due to the large number of offers on short sales, many take as long as a few months to receive approval. If information or required forms are missing or incomplete, the bank may set the offer aside, which could delay the process and cause the property to go into foreclosure. To expedite the process, sellers should work closely with their REALTOR® to provide all of the necessary paperwork.

• Working with a REALTOR® who has experience with short sales can help both sellers and home buyers during the transaction. A seasoned REALTOR® will be able to serve as the mediator between the seller and the lender, and lead to a successful transaction.

• It is important to remember that in a short sale, although the seller may be anxious about selling the property and willing to accept any offer, it is ultimately up to the lender to determine if, and at what price, the property can be sold. Home buyers should work closely with their REALTOR® to submit realistic offers.

To read the full story, please click here:

http://www.chicagotribune.com/classified/realestate/chi-sun-short-sales-0920sep20,0,5529436.story

In Other News…

San Francisco Chronicle

U.S. home prices rise 0.3 percent in July

U.S. home prices rose slightly in July from a month earlier, according to a government index, further evidence the housing market is stabilizing.

To read the full story, please click here:

http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/09/22/financial/f072850D08.DTL&type=realestate

CNN Money

1.4 million Americans score $8,000 tax credit

More than 1.4 million Americans have already claimed the new tax credit for first-time home buyers, according to a report from the Internal Revenue Service.

To read the full story, please click here:

http://money.cnn.com/2009/09/17/real_estate/homebuyer_tax_credit_claims_soaring/index.htm?postversion=2009091815

The Wall Street Journal

Want the home buyer tax credit? Don’t shop for furniture

With the deadline on the first-time home buyer tax credit looming, plenty of buyers are under contract and looking to close before Nov. 30. Excited to move into a new home, some of these first-timers start hitting the stores shopping for new furniture, appliances, or curtains. Big mistake,

To read the full story, please click here:

http://blogs.wsj.com/developments/2009/09/18/want-the-home-buyer-tax-credit-dont-shop-for-furniture/

Los Angeles Times

Homeowners who “strategically default” on loans a growing problem

Research using a massive sample of 24 million individual credit files has found that homeowners with high scores when they apply for a loan are 50% more likely to “strategically default”—abruptly and intentionally pull the plug and abandon the mortgage—compared with lower-scoring borrowers.

To read the full story, please click here:

http://www.latimes.com/classified/realestate/news/la-fi-harney20-2009sep20,0,2560658.story

San Francisco Chronicle

$30 billion home loan time bomb set for 2010

Next year, many option ARM payments will begin to readjust, slamming borrowers with dramatically higher monthly mortgage bills. Analysts say that could unleash the next big wave of foreclosures—and home-loan data show that the risky loans were heavily used in the Bay Area.

To read the full story, please click here:

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/09/20/MNOR19N2B1.DTL&type=realestate

Bailout Package

Lloyd Blankfein CEO – Goldman Sacs

2008 Compensation
$54 Million
Goldman Sacs Govt.
Bailout: $10 Billion

John Thain CEO – Merrill Lynch

2008 Compensation
$83 Million
Merrill Lynch Govt.

Bailout: $10 Billion

This information is from their SECC filings – disclosing all their perks, golf memberships etc..

Apparently John Thain only worked for 1/2 a year with a signing bonus of $15 million who gave up his bonuses for huge stock options. Goldman Sacs says they will give up their bonuses but how much of this will be a token because most of what they have been saying is that they need some of this money to retain Talent & that they cannot bring in the Executives they need if they cannot offer them high salaries. Aren’t these the guys that created the mess we are ?????????

SIX FINANCIAL COMPANIES THAT GOT $270 BILLION STILL OWN CORPORATE JETS.

]]> http://orangecountyrealestatevoice.com/2008/12/22/merrill-lynch-ceo-earns-83-million-in-compensation/feed/ 1 http://orangecountyrealestatevoice.com/2008/10/15/foreclosure-update/ http://orangecountyrealestatevoice.com/2008/10/15/foreclosure-update/#comments Wed, 15 Oct 2008 17:56:05 +0000 Patrick Canavan http://orangecountyrealestatevoice.com/?p=245 16,352 Notices of Default were filed in September, down from 42,790 in August, a decrease of 61.8% from August 2008, and a decrease of 36.4% from a year earlier.

Notices of Trustee Sale:

Filings decreased 47.3% from August to a total of 19,116 filings.
Filings increased 33.9% from September 2007.

Properties sold at auction increased 163.2% from the prior year, to 23,409 sales with a combined loan balance of $9.75 Billion. A 12.4% drop from August 2008

Lenders took back 95% of the properties taken to auction, with a combined loan value of $9.19 Billion. 5% probably taken at the Court house Steps.

.